A-LevelEconomicsInternational economic issues9708/12 · Oct/Nov 2025 · Q281 Mark

Between June and the end of July 2016, the UK pound sterling depreciated by 11% against a basket of currencies of the UK's major trading partners. The diagram shows the original aggregate demand curve AD₁ and the original aggregate supply curve AS, for the UK economy before June 2016. The equilibrium is at X. [Figure 28.1] What would have been the new equilibrium for the UK economy as a result of the depreciation of the pound sterling?

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APoint A

BPoint B

CPoint C

DPoint D

✓ Correct answer

A: Point A

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Topic: International economic issues, A-Level Economics (syllabus 9708). Multiple choice, 1 mark.
Source: A-Level Economics, Oct/Nov 2025 Paper 1 Variant 2, question 28.

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